Three members of the Cogwheel leadership team attended The HSMAI Commercial Strategy Conference Indianapolis in 2025. Three major themes dominated the conference: the impact of artificial intelligence on marketing, realigning commercial strategy via data storytelling and the increasing need for authenticity when segmenting audiences. Each insight shows not only the direction in which the hospitality industry will go, but also what hotel revenue teams and marketers must do to stay competitive.
Here are three key takeaways from Cogwheel, including context, facts, as well as the evolving approach of each.
If you did not hear the term “AI”, at least 15 different times in each session, then were you paying attention? HSMAI’s event showed that artificial intelligence has become a hot topic in all areas of commercial life, especially marketing and sales. That said, the chatter often masked a more balanced reality—AI is here, but SEO is far from obsolete…and AI is NOT destroying marketing.
It is important to note that AI does not always provide accurate information. Studies by Stanford in 2024 show AI language models can deliver factual correctness only around 52%–60% of the time when asked direct queries—a coin toss at best. While AI is good at binary questions (“Does Marriott Chicago provide parking?”), it’s not very useful for context-heavy, personalized travel planning.While AI is great at binary questions (“Does the Marriott Chicago offer parking? Try asking ChatGPT “what is the best pet friendly hotel in Chicago?” You’ll receive a generic list, which you could get through a Google search. AI doesn’t—and won’t for some time—know what is “best” for you or what you mean by “nearest” or “luxury”. Make no mistake…AI HAS and WILL get better.
Google has also launched Search Generative Experience, which we’ve all experienced. The AI-generated search results are a result of this. According to early data, it is causing traffic decreases for hotels’ websites. Some hotels are reporting a 19% decline in organic search traffic. We have always known that a large part of our organic search traffic is attributed to black-and white answers like “Is the Spa open after 9pm?” What is the valet charge at Hotel X? These queries don’t contribute to new business in a meaningful way. With our own Cogwheel Analytics data of the past two years across hundreds and hundreds of branded properties, we are seeing an organic drop…BUT…we are also seeing an INCREASE in “direct” traffic. Traffic that is not a result of a search or referred by another link. All of this points to the importance of ensuring accurate content and NOT worrying about losing exposure or awareness. If you properly prepare your property, at least.
Cogwheel has been helping our clients to achieve their goals for many years. GEO With SEOGenerative Experience Optimization and Search Engine Optimization. We are adjusting our content strategies so that they are AI-friendly, while also rooted in SEO best practices. This means more structured data, schema-marked landing pages, and human-readable content to answer both AI and user intentions. Our enhanced SEO packages will ensure your visibility in the future, both for search engine results and AI-fed experience.
This year’s conference featured a focus on cross-functional integration. No longer are sales, marketing and revenue departments able to operate independently with their own agendas. Storytelling is the most effective tool for today’s commercial leaders, who are expected by their employers to develop a comprehensive strategy.
The message was very clear. KPIs like ROAS (Return on Ad Spend)Once considered to be the ultimate metric for performance, they are now only one (small!) Dashboards are a part of the broader picture. Speakers Derek Brewster from Lotte Hotels & Resorts The following are some examples of how to get started: Dan Fernandez from Concord Hospitality The top success indicators are more multidimensional metrics, like the brand.com booking increase, the channel mix, and the quality of campaign traffic. They better align with long-term profit and owner value creation which is becoming increasingly scrutinized.
A second theme that was repeated was the (real but misused) concept of a funnel. While some of you roll your eyes at this cliché, the data supports its continued SIGNIFICANT relevance. Expedia’s 2023 Path to Purchase report shows that U.S. travelers visit an average of 277 pages of travel content over a 70+ day booking journey…and then take an additional 60 days before their check-in date. This is supported by the conference presentations! While last-minute bookings do exist, they are the exception and not the rule. The marketing strategy should reflect the longer research-to booking cycle.
As a principle of leadership, the importance of ownership was also highlighted. Many panelists highlighted the importance to learn from both success and failure. Campaign didn’t meet its goals? Great—what insight did we gain? Campaign exceeded expectations Perfect—how can we replicate that performance next quarter or next year?
Cogwheel combines data with storytelling through custom analytics dashboards. We help our clients visualize the performance of their multi-channel campaigns over time and not just from week to week or month to month. And by integrating campaign data with operational results, we’re telling stories that resonate with asset managers, ownership groups, and stakeholders—not just marketing teams.
The third key takeaway—one still evolving into a broader theme—was the critical importance of segmentation and authenticity. These days, marketing is no longer created for “everyone”, and internal stakeholders are assumed to know their customers better than data. Let me say that again…they…are…OVER.
At HSMAI several sessions stressed the need for brands to re-evaluate their true audience. Are you targeting your existing customers or potential new ones with your marketing campaigns? It is a huge difference that is usually missed. It is important to move from personas based on assumptions or opinions, to segments based on data. This means analyzing booking trends, user behavior, geographic origin data and campaign engagements, rather than just your gut instinct or what you think the brand-book wants. This also includes tailoring the tone and content to match. The modern traveler has an allergy to fake. Your message can’t be like a brochure promoting a petting zoo for unicorns. It must be grounded, real and aligned to the motivations of your customer.
Here, multi-channel engagement becomes critical. Effective segmentation doesn’t stop at knowing who your audience is—it’s about delivering personalized content across platforms where they spend time. In this, paid media, and especially targeted social ads, play a growing part. Simple creative—when it’s specific and audience-informed—often outperforms elaborate campaigns. All of this won’t work if the organic and paid channels don’t match.
Cogwheel refines its audience segmentation models by combining first-party data and third-party insights. We are combining this with tailored creative strategy across display, search and paid social. Email is also included. The voice of the story must be authentic, whether it’s about a boutique hotel that is important to a particular neighborhood or a short video on Instagram.
Final Thoughts
Stephanie Smith, our CEO, discussed the tried and tested. creation of hotel marketing budgetsIt is still a long way to go before we can solve the commercial strategy problems.
The HSMAI Commercial Strategy Conference confirmed that while technology continues to change the landscape of hospitality marketing, its fundamentals remain constant. Know your audience. Align your strategy. Tell the truth.
AI transforms how travelers find information, but doesn’t replace the need for an in-depth search strategy. Commercial leaders must connect the dots between departments and timeframes. Marketing content must, more than ever before, reflect what customers need to hear, not what the brand wants.
Cogwheel is committed to helping clients navigate this rapid change with creativity, clarity, and impact that can be measured. While the tools might change, the mission is the same: reach the right guest at the right moment with the right message.
